Digital technologies are transforming businesses in today's disruptive economy. What can your company do to embrace these changes during times of disruption? This infographic will guide you through the important components of implementing a successful digital transformation, including: customer experience, digital resilience, enhancing operational efficiencies, and increasing revenue.
The four key transformation elements
Enhancing operational efficiencies
Improving operational efficiencies is a priority for the middle market, and it is even more important now. Any digital project should include plans for better business processes, more simplicity, and greater flexibility. Utilizing artificial intelligence and automation when digitizing operations can cut costs and increase quality.
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Reviewing and improving operational processes can improve collaboration among people. Through collaboration, the business can produce intelligence and find solutions that reach further than the view of a single person, function, or entity. Decisions backed by data also help to focus innovations on areas that have the greatest impact on core business.
Improving digital resilience
The past few years have forced businesses to adapt quickly, including a hasty shift to remote work, pivoting their operations, or leaning heavily on digital revenue streams. The pandemic also resulted in an increase in cyber threats, and combatting these is vital for resilience. New technologies helped modernize many processes, but also exposed businesses to threats. However, there are options for businesses to mitigate these risks.
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Digital initiatives can help advance processes and increase efficiencies, but taking action for digital resilience is as important as protecting against potential threats. Resilience investments need to emphasize proactive threat intelligence, detection, and quick response, but also address basic data privacy and security measures. Security defenses can become so burdensome that they affect usability and hinder innovation. It’s important to have a realistic balance.
Refining the customer experience
The customer experience is a crucial business objective, especially during lean times. Customer retention could be the differentiator during economic disruption. Customer behaviors have changed, and digital transformation can deliver improved service while recognizing unmet needs through a better understanding of customer behavior. Quality customer experience can encourage loyalty and motivate both customer retention and acquisition.
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With digital transformation, customer experience is key for getting closer to the customer and discovering unknown customer needs. Digital initiatives for improving the customer experience can deliver effective personalization and engage with the customer in inventive ways. In a recession, it may be more profitable to focus on the customer experience rather than product or service innovations. In a time where many are tightening their wallets, it’s even more crucial to improve the end-to-end customer journey.
Increasing revenue
Many businesses are dealing with cash flow issues, due to ongoing effects of COVID-19’s economic impact, and some have pivoted from increasing revenue to preserving it. Digital transformation can attain both of these goals by optimizing processes and improving efficiencies. Expanding revenue streams requires rigorous effort and investment, but it could be an important factor for staying relevant in the digital economy.
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Companies need to be smart and manage their data as a corporate asset with economic value that can be measured and monetized. Data-driven decisions are especially significant when operations are disrupted and budgets are restricted. Data can deliver indirect business by helping make strategic decisions, or it can provide value with new business models, products, or services. Prioritize revenue generation plans that tap into unmet customer desires and utilize design principles to reframe problems in a human-centric way.
Digital transformation moving forward
A digital transformation strategy provides a blueprint as well as a vision for success through change. It also enables you to take advantage of disruptions in your business and identify new opportunities for success. Learn how BDO can help manage your digital transformation.